Insurance Rates for a Pre-Existing Condition

A pre-existing health condition can impact your life insurance rate because it decreases the number of years you can pay premiums. It may even be difficult to obtain a life insurance policy, depending on what the condition is, but it is critical that you be completely honest about your health history. If your health condition is discovered once your policy is in effect, you may risk cancellation of your policy.

A pre-existing condition is defined as a health problem you had before you became insured. Be sure to compare insurance companies, as some will deny coverage for a pre-existing condition, while others will insure a health condition, albeit at higher premium rates.

Protection for Pre-existing Conditions

The Health Insurance Portability and Accountability Act of 1996 (HIPAA) was created to make it more difficult for insurance companies to refuse coverage to people with pre-existing conditions.

Life Insurance Risk Classes

To determine premium rates, insurance companies evaluate a number of factors, one of which is your health. According to SmartMoney’s website, “just under 5% of shoppers are judged to be ‘substandard’ or ‘rated’ risk – and they can spend anywhere from five to 20 times as much for insurance as a ‘preferred’ client. Heart disease, diabetes or rheumatoid arthritis… usually place you in this risk category, and so do multiple sclerosis, hepatitis C, a past stroke or a recent history of certain types of cancer.”

If you can control a health problem with medication or therapy, some insurers will decrease your premium with adequate proof that your illness is not too much of a risk. If your health later improves, most insurance companies will rewrite your policy with a lower premium. Additional tests will likely be required periodically to prove that your health is on the upswing.

Additional Health Problems

A number of companies provide coverage for particular diseases, such as heart disease, cancer, or other high risk illnesses. If you have a health problem, research your options online to find the companies that will provide coverage at the best rates.

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